Real estate deals topped the IPO list in October.
The Hong Kong Stock Exchange bagged the biggest flotation in Asia last month with the relaunch of ESR Cayman. It is the second-largest IPO on the Hong Kong Stock Exchange so far this year.
After an initial attempt in June, ESR filed for its IPO again four months later, this time with a cornerstone investor secured. It gave investors confidence and ESR stock increased 7.4% to as much as HK$18.04 ($2.30) on November 1, though it had dropped back to its issue price of HK$16.80 when the market closed on Tuesday.
The charts below are compiled using data from Dealogic as of October 31
Top 10 IPOs across Asia in terms of deal size in October
Among the top 10 IPOs by deal size, Lotte REIT has had the largest price increase since its debut on October 30. Money raised from the IPO of South Korea’s largest real estate investment trust by market cap will be spent on real estate asset purchases for Lotte Shopping, the country’s largest department store chain. Lotte REIT’s share price had increased 25% to W6,360 ($5.51) by Tuesday, November 5.
Share price performance since debut in decending deal size
Sector-wise, It is not surprising that the deal value for the technology sector has shrunk this year. Real estate, thanks to the comeback of ESR Cayman and another three significant IPOs in Asia this month, became the second-largest sector by deal value. It was up 37% on the same period last year to reach $8.4 billion in October.
For the year as a whole, however, IPO deals have been more evenly distributed among sectors. Investors have become more rational and have deployed their capital in different sectors, rather than crowding into technology as they did last year.
Sector Comparison
